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Business, 13.12.2019 19:31 khorasanpublic
Granfield company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,000. the division sales for the year were $960,000 and the variable costs were $475,000. the fixed costs of the division were $527,000. if the backpack division is dropped, 40% of the fixed costs allocated to that division could be eliminated. the impact on granfield's operating income for eliminating this business segment would be:
a. $485,000 decrease
b. $210,800 increase
c. $274,200 decrease
d. $485,000 increase
e. $274,200 increase
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Granfield company is considering eliminating its backpack division, which reported an operating loss...
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